INDUSTRY’S CORPORATE DREAMS: THE STORY SO FAR

By Our Correspondent
Within months, most television software production houses, film production outfits and music companies in India are expected to go corporate. Several entertainment-based companies have already filed their prospectus with the Securities and Exchange Board of India (SEBI) while others are in the process of doing so. Apparently, this enthusiasm among filmfolk to go public was triggered off at the recently held two-day international conference organised by the Federation of Indian Chambers of Commerce (FICCI).

Among those companies that have already filed their papers at SEBI are Subhash Ghai’s Mukta Arts Ltd (PDF File), Pritish Nandy Communications Ltd, Tabassum International Ltd, Dheeraj Kumar’s Creative Eye Ltd, Ramesh and Kumar Taurani’s Tips Industries Ltd, Padmalaya Telefilms Ltd, Nimbus Communications Ltd and Ajay Devgan Entertainment.

Those that are already listed by SEBI include Prem Kishan’s Cinevista, and television software makers TV 18. According to Amit Khanna, co-chairman of the FICCI Entertainment Committee, other companies who will go for public issues would be Sony TV, Star TV, Sun TV, UTV, Jeetendra’s Balaji Telefilms, BR Films, Ramanand Sagar’s television software outfit, Manmohan Shetty’s Adlabs, Venus Music company, Kishore Lulla’s B4U, Shri Adhikari Brothers, PK Arts and Sunil Shetty’s outfit.

Manmohan Shetty of Adlabs says he is opting for a public issue because he is planning two cinema multiplexes in Mumbai. "I don’t need finance for my laboratory. But we do need a huge investment for the multiplex business, and that can be realised by going public," he explains. Jyoti Sagar of Sagar Arts who oversees the corporate division, says the company is planning more serials and films in the near future. "The finance market is very conducive. We are working out various methods of raising finance. However, eventually we have to think of IPO," she says.

Ravi Chopra of BR Films is yet another filmmaker on the verge of going public. "The reason why we want to go in for a public issue is because we want to build a modern studio and and a laboratory, apart from making more television serials and also feature films," he points out. Meanwhile, Ramesh Taurani of Tips says he had applied to SEBI for a public issue because he intended to start manufacturing compact discs (CDs). At least 50 other big producers are corporatising their proprietorship and partnership companies. The need for corporatising stems from the knowledge they gained during deliberations on various issues at the FICCI conference seminar. By joining hands with FICCI, filmdom has strengthened its own hands in dealing with the government. With Indian films fetching crores of rupees from the overseas market, there is also a desire to go global as suggested by Shekhar Kapoor in his keynote address at the conference. Britain, which is one of the biggest overseas markets for Indian films (besides the USA and Canada), is currently wooing Indian companies to shoot our films there.

Several Indian filmmakers are considering foreign collaborations. Director Umesh Mehra’s next film is expected to be an Indo-Russian project, while Sudhir Mishra’s is working on an Indo-French project. Such collaborations are possible only when more funds flow either through financial institutions or through public issues. Apart from the established film and television companies, even non-entertainment-based companies like Pantaloon Fashions are venturing into film production. Cola brands like Coke and Pepsi have already made a back door entry with sponsorship deals in Hindi films, and by hiring Hindi movie stars to promote their brands.